Bitcoin Leverage Rises As BTC Long-to-Short Margin Ratio Hits Record $2.5B By Cointelegraph

The impulse of cryptocurrency traders to create leveraged positions with (BTC) seems irresistible to many people, but it’s impossible to tell if these traders are extreme risk takers or savvy market makers who hedge their positions. The need to maintain hedges remains even if traders rely on leverage simply to reduce their exposure to the counterparty by keeping collateral and the bulk of their position in cold wallets.

Regardless of the reason for traders’ use of leverage, there is currently a very unusual imbalance in the margin lending markets that favors BTC longs betting on a price rise. Despite this, movement has thus far been restricted in the margin markets as the BTC futures markets were relatively quiet throughout 2023.